The financial aid is part of a three-year agreement for
about $3.7 billion (the value at the time) that was approved on December 7,
2018, under the IMF’s Extended Fund Facility (EFF).
The EFF provides for longer IMF support for a program, as
well as longer repayment terms for loans.
Monday’s disbursement brings the IMF to a total of nearly $3
billion granted in aid to the southwestern African country, which has
significant oil and mineral wealth, but a large part of its population lives in
poverty.
The three-year plan “aims to restore external and fiscal
sustainability, improve governance, and diversify the economy to promote
sustainable, private sector-led economic growth,” the IMF said in a statement.
The Washington-based lender noted that the economic shock
brought on by the coronavirus pandemic “continues to negatively impact Angola’s
economy and population.
“Oil production and prices remain weak, and the health and
social impacts of the pandemic continue to be felt,” the group said.
After a fourth review of Angola’s economy under the
three-year program, the IMF said that despite this difficult environment, “the
authorities… remain resolutely committed to the program.
“The authorities achieved a prudent fiscal adjustment in
2020 that included non-oil revenue gains and restraint in non-essential
expenditure, while preserving essential spending on health and social safety
nets,” the IMF concluded in approving the disbursement.